How do I calculate Interest?

[naniwa]

I need to calculate interest and have never done this function before.
It's not mortgage rate calculations, but rather interest as awarded
bank account.

If the interest rate is 10%.
The balance on Jan 1, 2000 is $10,000.

I am trying to calculate the balance from the Bank, with no othe
activity in the account, on May 18, 2004.

All the formulas I try, are giving me #NAME.

Thanks in advance

 

[Don Guillett]

What formulas are you trying. Look in HELP index for function to get a menu
of function types. Select financial.

 

[Peo Sjoblom]

How about

=FV(10%/12,52,0,-10000,0)

 

[Norman Harker]

Hi Naniwa!

I'll assume two commonly used banking customs:

1. The rate of 10% quoted is the annual nominal compounded monthly; ie.
10%/12 per month
2. The bank calculates interest at the daily effective equivalent of that
rate on the daily outstanding balance

This gives me the balance on your data as

A1: 1-Jan-2000
A2: 18-May-2004
A3:
=FV((1+10%/12)^(12/365)-1,B1-A1,0,-1000)
Returns: 1546.92165502782

As to why your formulas are returning #NAME!, the common reason for this
would be that you are using Analysis ToolPak functions when Analysis ToolPak
has not been installed and / or selected as an Addin.
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